With freezing weather on the horizon throughout much of the United States, including Texas, February natural gas prices at hubs key to Mexico shot up this week.

hsc

The Henry Hub February contract closed at $4.857/MMBtu on Wednesday, up 60.8 cents on the day and more than  $1 from one week ago. Agua Dulce was up by 81.3 cents at $5.447. Houston Ship Channel prices for February settled at $5.397, up 81.2 cents. Waha shot up 9.15 cents to close at $5.500.

“This latest cold blast will be the first test of Texas production and gas flows since Winter Storm Uri in February 2021,” said NGI’s Patrick Rau, director of Strategy & Research. “The good news is the state has had nearly a year to prepare for such events. The bad news is any price spike in Texas will flow through to Mexico,...